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GazMinto(Initiate)Initiate
20 Feb 2026

Hi All,

Need some help with MRE for a subdivision/land partition. The situation


  1. purchased a property in 2022 with my wife and another couple (all equal share)
  2. prior to settlement we completed a deed of partition stating we are purchasing for the purpose of demolishing, redevelop to duplex, and subdividing two lots. This was on advice of our solicitor who advised we needed it to show our intention has been from the start
  3. property settled and my wife and I moved straight in and made the property our main residence for approx 18 months
  4. moved out of property and it sat vacant until it was demolished. The property still remains our main residence as we don’t have any other properties.
  5. property demolished, duplex constructed on land
  6. now duplex is complete we are submitting paperwork to subdivide to two Torrens title lots.
  7. one couple will own one lot 100% (duplex A) and the other couple will own the other lot 100% (duplex B) so both completely separate

I’ve been advised the process of partitioning the land could trigger CGT as it could be seen that we are disposing 50% share of Duplex B to the other couple, and they are disposing 50% of Duplex A to us


My query is how could it trigger CGT when the premises has been our ‘main residence’ the entire time.


thanks

96 views
3 replies
96 views
3 replies

All replies

Taxduck(Taxicorn)Taxicorn
21 Feb 2026

Question now is, can you avoid this being a CGT event? Maybe

Under CGT rules it is the beneficial owner of an asset that is subject to CGT on disposal. The ATO considers the legal owner as the beneficial owner unless there is evidence that this is not the case.

A private ruling would be needed. You can view other private rulings on the ATO legal database. Search for "beneficial ownership and CGT". This is where your deed of partition may prove useful as it is evidence that would help show that you have no beneficial ownership in the other couple's lot.

Private rulings | Australian Taxation Office

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Main Residence Exemption - Subdivision/Land Partition | ATO Community